UPDATE: Bank of America Downgrades Mistras Group Following FY13 Outlook Cut

In a report published Thursday, Bank of America analyst Andrew Obin downgraded Mistras Group MG from Buy to Neutral, and lowered the price target from $28.00 to $19.00.

In the report, Bank of America noted, “We are downgrading MG from Buy to Neutral and lowering our PO from $28 to $19 following its recent FY13 outlook cut ahead of its FY4Q13 earnings release next month. We are cutting our estimates to the low end of the company's outlook, with FY14/FY15 EPS going from $1.34/$1.59 to $0.71/$0.84. Although Mistras is structurally positioned to benefit from secular growth trends in the testing industry, in our view, a significantly lower rate of earnings growth near-term and operational volatility will contain the company's valuation multiple.”

Mistras Group closed on Wednesday at $17.50.